While 73% of homebuyers show at least some interest in Energy Performance Certificates (EPCs), their influence on purchase decisions remains limited, it has been suggested.
In October 2021, the UK Government published its Heat and Buildings Strategy that set out how the UK will decarbonise homes and commercial, industrial and public sector buildings, as part of setting a path to net zero by 2050.
Since then, the moving of goalposts for properties to reach a minimum EPC C rating has taken place with continual consultations on various reforms. Targets and regulations are also under review by the governments and departments in Wales, Scotland and Northern Ireland.
Starting with a review of the influence of EPCs on the decisions of homebuyers, property investors, and tenants, Propertymark’s latest report reveals that while there is some consumer interest in EPCs, the level of importance varies across different sectors.
Propertymark says that Government grants that cover a broader range of home improvements are the only way to drive change, with its research discovering that 72% of residential and commercial agents cited this as being the most important factor.
This was closely followed by offering larger grants for home improvements, where 67% said that allowing energy efficiency improvement costs to be offset against capital gains tax, and reduced tax on the purchase of home movers next property is a key incentive.
Timothy Douglas, Head of Policy and Campaigns comments:
“Our most recent research shows that, while interest in energy efficiency ratings is growing, a higher EPC rating of a property is not having a significant impact on the sale price in most instances.
If governments and departments across the UK are serious about moving to net zero through reducing the energy consumption in homes and buildings, landlords and homeowners need a greater financial incentive and support to make energy efficiency improvements.
The majority of our member agents agree that the best way to do this is to provide clarity on targets, enhance the role of EPCs and introduce grants that cover a broader range of improvements, which is especially important at a time when rising mortgage and other living costs are making it more difficult for many homeowners and landlords to foot the bill for these upgrades.”
